Is Automotive Axles overvalued or undervalued?

As of May 21, 2025, Automotive Axles is considered undervalued with an attractive valuation grade, a PE ratio of 17.50, an EV to EBITDA of 12.17, a ROCE of 22.01%, and a dividend yield of 1.78%, despite underperforming the Sensex over the past year.

As of 21 May 2025, the valuation grade for Automotive Axles has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a PE Ratio of 17.50, an EV to EBITDA of 12.17, and a ROCE of 22.01%. <BR><BR>In comparison to its peers, Automotive Axles has a more favorable valuation than Samvardhan Motherson, which has a PE of 29.14, and Bosch, which is considered expensive with a PE of 46.21. The company's dividend yield stands at 1.78%, further enhancing its attractiveness to investors. While Automotive Axles has underperformed the Sensex over the past year with a return of -9.00% compared to the Sensex's 7.65%, its strong fundamentals suggest it may be poised for recovery.

Who are the top shareholders of the Automotive Axles?

The top shareholders of Automotive Axles include Bf Investment Limited with 35.52%, mutual funds with 13.4%, and Nippon Life India Trustee Ltd with 8.81%. Individual investors hold 12.86%, while Foreign Institutional Investors have 0.54%, with no pledged promoter holdings reported.

The top shareholders of Automotive Axles include several key players. The majority shareholder is Bf Investment Limited, which holds a significant 35.52% of the shares. Additionally, mutual funds collectively hold 13.4% through 10 different schemes. The highest public shareholder is Nippon Life India Trustee Ltd, representing various schemes, with an 8.81% stake. Individual investors also have a notable presence, holding 12.86% of the shares. Foreign Institutional Investors (FIIs) hold a smaller portion, with 0.54% across 33 different entities. There are no pledged promoter holdings reported.

When is the next results date for Automotive Axles?

No Upcoming Board Meetings

Has Automotive Axles declared dividend?

Yes, Automotive Axles Ltd has declared a dividend of 320% (₹32 per share), with an ex-date of July 29, 2024. While recent short-term returns have been negative, the company has shown significant long-term growth over the past five years.

Automotive Axles Ltd has declared a dividend of 320%.<BR><BR>Dividend Details:<BR>- Percentage announced: 320%<BR>- Amount per share: 32<BR>- Ex-date: 29 Jul 24<BR><BR>Dividend Yield: 1.77%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -1.91%, with a dividend return of 0%, resulting in a total return of -1.91%.<BR><BR>Over the past year, the price return was -9.65%, the dividend return was 1.63%, leading to a total return of -8.02%.<BR><BR>In the 2-year period, the price return was -18.18%, the dividend return was 2.82%, culminating in a total return of -15.36%.<BR><BR>For the 3-year period, the price return was 6.8%, the dividend return was 5.10%, which resulted in a total return of 11.9%.<BR><BR>In the last 4 years, the price return was 34.47%, the dividend return was 6.31%, leading to a total return of 40.78%.<BR><BR>Finally, over the past 5 years, the price return was 248.8%, with a dividend return of 14.54%, resulting in a total return of 263.34%.<BR><BR>Overall, Automotive Axles Ltd has declared a substantial dividend, and while the short-term returns have been negative, the long-term performance, particularly over 5 years, shows significant growth, indicating a potential for recovery and value for shareholders.

Who are the peers of the Automotive Axles?

Peers of Automotive Axles include Schaeffler India, Bosch, Bharat Forge, and NRB Bearings, among others. Automotive Axles has average management risk and growth, with a 1-year return of -9.62%.

Peers: The peers of Automotive Axles are Samvardh. Mothe., Bosch, Schaeffler India, Bharat Forge, Tube Investments, NRB Bearings, Carraro India, Federal-Mogul Go, NDR Auto Compon., and Rajratan Global.<BR><BR>Quality Snapshot: Excellent management risk is observed at Schaeffler India, Tube Investments, and NRB Bearings, while Good management risk is found at Bosch, Bharat Forge, and Carraro India. Average management risk is present at Automotive Axles, Samvardh. Mothe., Federal-Mogul Go, and NDR Auto Compon. In terms of Growth, Excellent growth is noted at Schaeffler India, Tube Investments, and NDR Auto Compon., while Good growth is seen at Automotive Axles, Bharat Forge, and Carraro India. Average growth is found at Bosch, while Below Average growth is noted at NRB Bearings and Rajratan Global. Excellent capital structure is present at Bosch, Schaeffler India, Tube Investments, and NDR Auto Compon., while Good capital structure is observed at Automotive Axles, Samvardh. Mothe., and NRB Bearings. Average capital structure is seen at Bharat Forge and Carraro India.<BR><BR>Return Snapshot: NDR Auto Compon. has the highest 1-year return at 144.78%, while Bharat Forge has the lowest at -20.65%. Automotive Axles' 1-year return is -9.62%, which is higher than Bharat Forge's but lower than NDR Auto Compon.'s. Additionally, the six-month return is negative for Automotive Axles, Bosch, Bharat Forge, Tube Investments, NRB Bearings, and Rajratan Global.

Who are in the management team of Automotive Axles?

As of March 2023, the management team of Automotive Axles includes Baba Kalyani (Chairman), Kenneth James Hogan, B B Hattarki, B C Prabhakar, Shalini Sarin (all Non Executive Directors), and Nagaraja Sadashiva Murthy Gargeshwari (Whole-time Director), combining both executive and non-executive roles.

As of March 2023, the management team of Automotive Axles includes the following members:<BR><BR>1. Baba Kalyani - Chairman & Non Executive Director<BR>2. Kenneth James Hogan - Non Executive Director<BR>3. B B Hattarki - Independent Non Executive Director<BR>4. B C Prabhakar - Independent Non Executive Director<BR>5. Shalini Sarin - Independent Non Executive Director<BR>6. Nagaraja Sadashiva Murthy Gargeshwari - Whole-time Director<BR><BR>This team comprises a mix of executive and non-executive directors, with various roles in guiding the company's strategic direction.

What does Automotive Axles do?

Automotive Axles Ltd is India's largest independent manufacturer of Rear Drive Axle Assemblies, established in 1981 as a joint venture between Bharat Forge and Meritor. As of March 2025, it reported net sales of ₹5,596 Cr and a net profit of ₹459 Cr, with a market cap of ₹2,736 Cr.

Overview:<BR>Automotive Axles Ltd is the largest independent manufacturer of Rear Drive Axle Assemblies in India, operating within the Auto Components & Equipments industry and classified as a Small Cap company.<BR><BR>History:<BR>Incorporated in 1981, Automotive Axles Ltd is a joint venture between Bharat Forge Limited and Meritor Heavy Vehicle Systems LLC. The latest quarterly results reported net sales and profit for March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 5,596 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 459 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: INR 2,736 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 18.00 <BR>Industry P/E: 39 <BR>Dividend Yield: 1.77% <BR>Debt-Equity: -0.05 <BR>Return on Equity: 17.34% <BR>Price to Book: 3.05 <BR><BR>Contact Details:<BR>Address: Hootagalli Industrial Area, Off Hunsur Road Mysore Karnataka : 570018 <BR>Tel: 91-0821-7197500 <BR>Email: sec@autoaxle.com <BR>Website: http://www.autoaxle.com

How big is Automotive Axles?

As of 24th July, Automotive Axles Ltd has a market capitalization of 2,703.00 Cr, with recent net sales of 2,077.53 Cr and a net profit of 155.53 Cr. The company reported shareholder's funds of 981.92 Cr and total assets of 1,354.71 Cr.

As of 24th July, Automotive Axles Ltd has a market capitalization of 2,703.00 Cr, classifying it as a Small Cap company.<BR><BR>In the latest four quarters, Automotive Axles reported Net Sales of 2,077.53 Cr and a Net Profit of 155.53 Cr.<BR><BR>For the latest annual period, the company reported Shareholder's Funds of 981.92 Cr and Total Assets of 1,354.71 Cr.

Are Automotive Axles latest results good or bad?

Automotive Axles' latest results are concerning, showing a slight profit increase but significant declines in net sales, marking the lowest quarterly revenue since post-pandemic recovery. The market reacted negatively, with the stock dropping 4.50%, indicating challenges in the commercial vehicle segment.

Automotive Axles' latest results can be characterized as concerning. The company reported a net profit of ₹35.95 crore for Q2 FY26, which is a slight increase of 0.64% quarter-on-quarter but a marginal decline of 0.06% year-on-year. However, the net sales of ₹461.76 crore reflect a significant drop, with a 5.64% decrease compared to the previous quarter and a 6.65% decline year-on-year. This marks the lowest quarterly revenue since the company began its recovery post-pandemic, raising concerns about demand in the commercial vehicle segment.<BR><BR>While the operating margin improved to 10.46% from 9.78% in the previous quarter, it remains below the 11.19% achieved in Q4 FY25. The market reacted negatively to these results, with the stock declining by 4.50% following the announcement. Overall, the combination of revenue contraction and flat profit growth indicates that the company is facing significant challenges in the current operating environment.

How has been the historical performance of Automotive Axles?

Automotive Axles has experienced fluctuating net sales and profitability, with a decline in net sales from 2,323.70 Cr in March 2023 to 2,077.54 Cr in March 2025, despite a significant increase from 1,490.62 Cr in March 2022. The company faces challenges in maintaining profitability and cash flow stability, with operating profit and cash flow from operations both decreasing in recent years.

Answer:<BR>The historical performance of Automotive Axles shows a fluctuating trend in net sales and profitability over the years. <BR><BR>Breakdown:<BR>Automotive Axles reported net sales of 2,077.54 Cr in March 2025, a decline from 2,229.17 Cr in March 2024 and 2,323.70 Cr in March 2023, but a significant increase from 1,490.62 Cr in March 2022. The total operating income followed a similar pattern, peaking at 2,323.70 Cr in March 2023 before decreasing in subsequent years. The raw material cost has also seen a decrease, from 1,675.15 Cr in March 2023 to 1,474.95 Cr in March 2025. Operating profit (PBDIT) was 247.23 Cr in March 2025, down from 262.00 Cr in March 2024, while profit before tax was 210.61 Cr, slightly lower than the previous year's 222.97 Cr. Profit after tax showed a similar trend, with 155.54 Cr in March 2025 compared to 166.16 Cr in March 2024. The company's total assets increased to 1,354.71 Cr in March 2025 from 1,226.38 Cr in March 2024, while total liabilities also rose to 1,354.71 Cr from 1,226.38 Cr. Cash flow from operating activities decreased significantly to 128.00 Cr in March 2025 from 260.00 Cr in March 2024, resulting in a net cash outflow of 24.00 Cr in March 2025. Overall, while Automotive Axles has seen growth in certain areas, it faces challenges in maintaining profitability and cash flow stability.

Should I buy, sell or hold Automotive Axles?

Is Automotive Axles technically bullish or bearish?

As of December 2, 2025, Automotive Axles shows a mildly bullish trend supported by positive weekly and monthly indicators, although daily moving averages suggest some caution.

As of 2 December 2025, the technical trend for Automotive Axles has changed from sideways to mildly bullish. The weekly and monthly MACD, KST, and Dow Theory indicators are all mildly bullish, supporting a positive outlook. Bollinger Bands also indicate a bullish stance on both weekly and monthly time frames. However, the daily moving averages are mildly bearish, which introduces some caution. Overall, the current technical stance is mildly bullish, driven primarily by the strength in the MACD, KST, and Dow Theory indicators.

Which are the latest news on Automotive Axles?

Why is Automotive Axles falling/rising?

As of 03-Dec, Automotive Axles Ltd's stock price is declining to 1,824.00, reflecting a 2.22% drop after a trend reversal. Despite a recent weekly gain of 13.56%, the stock has underperformed its sector and the Sensex over the year, indicating mixed investor sentiment.

As of 03-Dec, Automotive Axles Ltd's stock price is falling, currently at 1,824.00, which reflects a decrease of 41.5 points or 2.22%. This decline follows a trend reversal after five consecutive days of gains, indicating a shift in market sentiment. The stock has underperformed its sector by 1.26% today and reached an intraday low of Rs 1806.15, marking a drop of 3.18%.<BR><BR>Despite the recent downturn, the stock has shown positive performance over the past week, with a gain of 13.56%, while the Sensex has decreased by 0.59%. However, over a longer period, the stock's year-to-date return is only 3.35%, compared to the Sensex's 8.92%, and it has underperformed over the past year and three years as well.<BR><BR>Investor participation appears to be increasing, with a delivery volume rise of 14.92% against the five-day average, suggesting some ongoing interest despite the current price drop. The stock remains above its moving averages, which typically indicates a bullish trend, but the recent price action suggests that investors may be reacting to short-term market fluctuations rather than long-term fundamentals. Overall, the combination of recent performance, sector underperformance, and the trend reversal contributes to the current decline in Automotive Axles Ltd's stock price.